《税收概述》（英文版） chapter 5 other Corporate

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1 Chapter 5: Other Corporate Tax Levies

OTHER CORPORATE TAX LEVIES Alternative minimum tax (AMT) Personal holding company(PHC)tax Accumulated Earnings Tax (AET

2 OTHER CORPORATE TAX LEVIES Alternative minimum tax (AMT) Personal holding company (PHC) tax Accumulated Earnings Tax (AET)

Aternative Minimum Tax (AMT AMT is an acceleration of a corps income taxes Small C corp exemption from AMT AMT formula AMT credit 3

3 Alternative Minimum Tax (AMT) AMT is an acceleration of a corp’s income taxes Small C corp exemption from AMT AMT formula AMT credit

Small C Corp Exemption from AMT Average gross receipts <$5M for three year period to qualify First year begins after 12-31-97 Continuing qualification is based upon three year average gross receipts of≤$7.5M

4 Small C Corp Exemption from AMT Average gross receipts  $5M for three year period to qualify First year begins after 12-31-97 Continuing qualification is based upon three year average gross receipts of  $7.5M

AMT Formula (1of3) Taxable income before nol Tax preference items +/ Adjustments to taxable income other then ACE adjustment and AMT NOL deduction Pre-adjustment AMTI 5

5 AMT Formula (1 of 3) Taxable income before NOL + Tax preference items +/- Adjustments to taxable income other then ACE adjustment and ____AMT NOL deduction = Pre-adjustment AMTI

AMT Formula (2of3) Pre-adjustment AMTI +/% of difference between pre adⅰ ustment amti and ace AMT NOL deduction AMTI Statutory exemption Tax base

6 AMT Formula (2 of 3) Pre-adjustment AMTI +/- 75% of difference between pre￾adjustment AMTI and ACE - AMT NOL deduction = AMTI - Statutory exemption = Tax base

AMT Formula (3of3) Tax base X 20% tax rate Tentative minimum tax before credits AMT FTC F Tentative minimum tax (TMT) Regular income tax liability aMT due

7 AMT Formula (3 of 3) Tax base X 20% tax rate = Tentative minimum tax before credits - AMT FTC = Tentative minimum tax (TMT) - Regular income tax liability = AMT due

AMT Credit Corp may take a credit in future years for AMT paid in previous years if computed regular tax, minus all non-refundable credits, is larger than that years TMT 8

8 AMT Credit Corp may take a credit in future years for AMT paid in previous years if computed regular tax, minus all non-refundable credits, is larger than that year’s TMT

Personal Holding Company (PHC) Prevents closely held C corps from sheltering passive income from higher individual tax rates Stock ownership test Passive income test PHC penalty tax of 39.6%

9 Personal Holding Company (PHC) Prevents closely held C corps from sheltering passive income from higher individual tax rates Stock ownership test Passive income test PHC penalty tax of 39.6%

Stock Ownership Test Five or fewer s/hs who own 250%of outstanding stock at any time during last 6 months of corp's tax year 8544 attribution rules apply Similar to 318 attribution rules except >Except family attribution also includes ALL ancestors and lineal descendents >Corp attribution for ALL shareholders Attribution rules cannot be used to 10

10 Stock Ownership Test Five or fewer s/hs who own – 50% of outstanding stock at any time during last 6 months of corp’s tax year §544 attribution rules apply –Similar to §318 attribution rules except: »Except family attribution also includes ALL ancestors and lineal descendents »Corp attribution for ALL shareholders –Attribution rules cannot be used to prevent a corp from being a PHC